Filing Chapter 7 bankruptcy is a powerful way to discharge debts outright and get a fresh financial start, but it is not for everybody. A Chapter 7 is conversationally referred to as a “clean slate” filing, meaning that it allows for immediate discharge. This may not be the ideal filing for people who own large amounts of property, however, as it may put them in jeopardy.
Additionally, in order to file for Chapter 7 bankruptcy, it is necessary to pass the means test. The means test is the way of determining whether a household income is less than the median income of a house the same size (within a given state). If it is, you are eligible to file for Chapter 7. If not, it will be necessary to pursue Chapter 13 bankruptcy.
Chapter 7 bankruptcy allows you to eliminate unsecured debt, including credit card debt and medical bills. It will also stop creditor harassment, lawsuits and wage garnishment.
Additionally, certain property can be kept — exempt property. Cars and houses can be kept if one agrees to pay past-due balances on loans.
Stop stressing over unmanageable debt. You owe it to yourself to become informed about your rights. Attorney Michael G. Pond is prepared to bring more than two decades of bankruptcy experience to help you determine if Chapter 7 is right for your situation. If so, he will work directly with you to efficiently and effectively reach the best possible outcome.
Jackson-based Pond Law Firm is a federally designated debt relief agency. Our lawyer helps people file for bankruptcy relief under the Bankruptcy Code.